A strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs is called __________________.

Question

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Predatory pricing is a strategy where a company intentionally sets prices below the cost of production to drive out the competition. Once competitors are eliminated, the company can raise prices to a higher level and increase profits. This practice is often illegal and viewed as anti-competitive behavior.

A Strategy to Intentionally Sell Below Cost to Push a Competitor